Gov. Rauner: I am not. So, to be clear, my assets, all my investments are in a trust that I don’t control. I did that when I became governor. I can’t comment on any business disputes. That gets settled in its own process.

Reporter: Is that the reason why it’s sealed because it’s through a blind trust?

Gov. Rauner: I can’t even tell you, I mean, I don’t really have much to do with that.

Reporter: Is there attorneys who are doing that?

Gov. Rauner: I assume. I don’t know.

Rauner aide: Alright, thanks everyone.

He didn’t know anything about it and didn’t have much to do with it, eh?

Rauner invested $5 million as a limited partner in Kirkpatrick Capital to acquire a minority share in United Shore Financial Services, LLC (”United Shore”), a privately held mortgage lender.

Rauner received an exceptional return on that investment which was made possible by a settlement of two distinct disputes with United Shore—a personal bonus claim brought by Kirkpatrick against United Shore and derivative claim brought by Kirkpatrick Capital against United Shore. This parties’ dispute concerns the allocation of those settlement proceeds. Rauner’s share of the settlement proceeds turned his $5 million investment into more than $20 million.

This $15 million gain, however, apparently is not enough for Rauner. Rauner now seeks to cut-off Kirkpatrick, in a confidential arbitration closed to public scrutiny, from his fair share of the settlement proceeds by seeking to ensure his own, self-serving interpretation of the United Shore settlement agreement (even though he is not a party to it). Rauner seeks to use Kirkpatrick Capital’s partnership agreement as a shield in the proceeding, alleging that his claims arise under Kirkpatrick Capital’s partnership agreement (which has an arbitration clause). Rauner’s claims, however, do not arise from the partnership agreement, but instead from the settlement agreement (which requires litigation in this Court) and therefore must be heard in this Court. […]

Kirkpatrick specifically kept Rauner informed throughout the litigation regarding his objectives in terms of a return on Rauner’s investment and the allocation of the settlement proceeds. At an in-person meeting in Springfield, Illinois, on May 11, 2015, on the back porch of the Governor’s mansion, Kirkpatrick laid out his expectations regarding the return to Kirkpatrick Capital from a settlement and the allocation of the settlement. These expectations were updated and communicated at a second in-person meeting between Rauner and Kirkpatrick at the Chicago Club on the evening of September 15, 2015. At neither meeting did Rauner object to the proposed allocation of the settlement proceeds, nor the return on his investment he would receive. […]

Rauner’s total proceeds from the United Shore investment were approximately $20 million, with $15 million of that being profit.

In the summer of 2017, after receiving all payments due to him, Rauner filed a demand for arbitration before the American Arbitration Association that the settlement agreement precludes Kirkpatrick Capital’s allocation of the United Shore settlement proceeds and claiming that Kirkpatrick and the Kirkpatrick Capital breached and interfered with the LPA.

Tellingly, Kirkpatrick Capital’s other two investors, Ganzi and Chaifetz—who are seasoned and sophisticated equity investors did not dispute or take issue with Kirkpatrick Capital’s allocation of the settlement proceeds.

Also, Politifact took a look at the “blind trust” angle. Click here. The topic will likely be revisited now that an allegation has been made that Rauner took an active role in his investments while he was governor.

*** UPDATE 1 *** Biss campaign…

“This is why we need to be careful when a billionaire uses the word “trust” colloquially. From Rauner’s investment scams to JB Pritzker and Chris Kennedy’s tax scams, it’s getting hard to tell these guys apart.” - Tom Elliott

*** UPDATE 2 *** Pritzker campaign…

Today, a judge unsealed Kip Kirkpatrick’s lawsuit against Bruce Rauner, shedding light on a business dispute Rauner had previously claimed to have no involvement in and no knowledge of.

The lawsuit details Bruce Rauner’s maneuvers as governor to maximize returns on a $5 million investment he had made in Kirkpatrick Capital. Kirkpatrick claims to have met repeatedly with Rauner, including once at the governor’s mansion, regarding his business interests despite Rauner’s claim to the public that “all my investments are in a trust that I don’t control.”

“Bruce Rauner is allegedly conducting private business out of the governors’ mansion and then openly lying about it to the public,” said Pritzker communications director Galia Slayen. “It is no wonder this failed governor tried to keep this lawsuit sealed, but now that it’s public, it is time for Bruce Rauner to tell voters the truth.”

*** UPDATE 3 *** Kathleen Murphy at the Jeanne Ives campaign…

“Lying and screwing people out of their money is apparently a practice Bruce Rauner brought with him from his dealings in the private sector to his dealings as Governor.”

Lyin liars and the lies they tell. Let’s not forget, Rauner was never a venture capitalist but always a vulture capitalist who profited with reckless abandon by screwing other people in pursuit of maximum greed.

And now we know he had this sealed to hide his greed and deception. Oh, and he lied about that too. Should anything surprise us anymore?

B & W photo of the Governor’s Mansion. :30 second spot… slowly from wide shot to tight spot on Mansion

“Governor Rauner broke his word. On the porch of the Governor’s Mansion, Bruce Rauner ran his businesses, something he said he’d never do. Shouldn’t we have someone in the Governor’s Mansion we can trust to do the people’s business and not their own?”

“Bruce Rauner used the porch of the Governor’s Mansion to do a business deal that netted him $15 million dollars, a 300% return on an investment. Wasn’t the business done at the people’s house suppose to be about making things better for the people of Illinois? Instead, Bruce Rauner did his own business, making millions, for him”

I think the more salient point is that there were two meetings where Rauner was told what his take would be on the deal, he didn’t object or argue for more money, so the other guy thought he had a deal. Then Rauner has his lawyers sue for more money. This is what Rodongo learned the hard way and why Madigan won’t even meet with him.

There can be no “deal” with Rauner. He cannot be trusted. At all. Ever.

It’s still a blind trust if he had his eyes closed the whole time he was conducting his business from the Governor’s Mansion, right? Close your eyes as tightly as you can and say, “short-sell Illinois bonds”

How much more of a return did Bruce think he was entitled to? $5M? $20M?

How is it worth it for him to have this lawsuit over such chicken feed?

Considering how much he has “invested” in getting to be Guv, and how much more in “capital contributions” he continues to make in this investment, you would think he would just begrudgingly accept his 300% return from Kip and protect his much larger (and public) investment.

Lots of ranting, raving, measured criticism…. but it only leads to a possible defeat of Rauner in the election. Otherwise, he is off scott free. Justice for the wealthy is like the satisfying puff on a Marlboro.

I think it only fair to the public that the ISP and FBI investigate the (current) Governor and determine if he indeed is or has been conducting private business on state time and property. And they should release all the tapes from the Rauner Investigation. You know… for justice. Or something.

Goodbye to your one weapon against Pritzger, Governor; when this boil fully pops, it should neatly cancel out your ad campaign, and then you’ll have only your record to run on.

It is against the law to run your business on state time and property unless you are paying like the fast food places at the student unions or you have an agreement to donate. If he was he sure would not want to hide it. He needs to go now. This is very bad.

Maybe, but there’s a gate all the way around the mansion. I’m not sure how strict they are about having people sign in or something, but you can’t just walk up to any part of the building without someone noticing.

I am suprised Ives has not fully jumped because we are now at lawbreaking and this suit sure looks like the Blago tapes. ……It would be an easy way for an Ives…Proft..Uhlein win…..until they lose in a landslide in November.